Timken Supports 21st Century Energy Policy Passed by Senate

COLUMBUS—State Senator Jane Timken (R-Jackson Township) supports legislation unanimously passed by the senate today that provides a new 21st Century power policy that is reliable, affordable, and accountable to Ohio. Senate Bill 2 energizes and maximizes Ohio’s power industry by focusing on projects that generate baseload power, which is the demand needed to power homes, businesses, and industry across the state every day.

“Senate Bill 2 puts Ohio in a strong position, where it drives energy reliability and supply, while protecting consumers,” said Senator Timken. 
 
“This is a major step forward in meeting Ohio’s ever changing power needs,” said President Rob McColley. “We wanted to do more than just enough to keep the lights on, my colleagues and I prioritized a policy that makes Ohio a net exporter of power.”

The bill also revises the state’s outdated tax structure on energy production.
 
“Ohio is well positioned to contribute baseload power in part due to significant access to clean natural gas as a reliable and affordable fuel source,” said Senate Energy Chairman Brian Chavez. “Senate Bill 2 incentivizes new baseload generation projects by reducing the tangible personal property tax (TPP) on electricity generation project and the infrastructure associated with those projects.”
 
The bill also provides additional accountability to consumers by repealing Electric Security Plans (ESP’s) which are also known as “riders.” This has been a way to charge consumers more without necessarily making the case for why an energy company needed additional funds.

This repeals the riders altogether, in favor of a traditional rate case format, where the energy company would have to fully disclose its financials to the Public Utility Commission before a rate increase would be approved.

Senate Bill 2 also establishes Priority Investment Areas (PIA’s) for new power generation projects. This is key to revitalizing brownfields and even decommissioned coal power plant sites for new generation projects.
 
“I want to thank my colleagues for taking a truly visionary approach to what Ohio’s power policy should look like in the 21st Century,” said Senator Bill Reineke who sponsored SB 2. “I’m confident that these reforms will not only place Ohio among the top power suppliers, but also provide the reliability and accountability that should come with that for consumers.”